DoD awards $28.3M for trailers, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $28,257,734 ($28.3M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-24

End Date: 2009-09-30

Contract Duration: 190 days

Daily Burn Rate: $148.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 0001AA FOR 22 EACH, M915A3S AND CLIN 0003AA FOR 60 EACH, M916A3S FOR AFGHANISTAN ARE ADDED TO THE CONTRACT BY THIS DELIVERY ORDER.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: CLIN 0001AA FOR 22 EACH, M915A3S AND CLIN 0003AA FOR 60 EACH, M916A3S FOR AFGHANISTAN ARE ADDED TO THE CONTRACT BY THIS DELIVERY ORDER. Key points: 1. Contract awarded for specialized trailers, indicating a need for mobile support infrastructure. 2. The contract was competed fully and openly, suggesting a competitive market for these goods. 3. A relatively low number of bids (2) may warrant further investigation into market reach. 4. The contract duration of 190 days points to a short-term, specific deployment need. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. This award falls within the manufacturing of travel trailers and campers sector.

Value Assessment

Rating: fair

The total award of $28.3 million for 82 units (22 M915A3S and 60 M916A3S) averages to approximately $344,500 per unit. Benchmarking this against similar specialized military trailer contracts is difficult without more specific technical details. However, the price appears to be within a reasonable range for complex, mission-specific equipment, especially considering potential customization and support requirements.

Cost Per Unit: Approximately $344,500 per unit (average across M915A3S and M916A3S).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access, the low number of bidders could suggest potential barriers to entry, limited market availability for these specific trailer types, or a lack of aggressive marketing by the procuring agency.

Taxpayer Impact: The receipt of only two bids, despite full and open competition, may indicate that taxpayers did not benefit from the widest possible range of pricing options. Further analysis could explore if the solicitation requirements were overly restrictive or if the market for such specialized equipment is inherently limited.

Public Impact

The primary beneficiaries are the U.S. Army, receiving essential mobile support equipment. The services delivered include the provision of M915A3S and M916A3S trailers. The contract specifies delivery for Afghanistan, indicating a direct impact on overseas operations. Workforce implications are likely within the manufacturing sector, specifically for trailer production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) despite full and open solicitation may indicate potential market concentration or restrictive requirements.
The specific nature of the trailers (M915A3S, M916A3S) suggests specialized manufacturing capabilities are required, potentially limiting the bidder pool.
The destination (Afghanistan) implies logistical complexities and potential for unforeseen costs or delays.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
The contract is firm fixed price, providing cost certainty for the government.
The contractor, Daimler Truck North America LLC, is a known entity in vehicle manufacturing.

Sector Analysis

This contract falls under the Manufacturing of Travel Trailer and Camper Manufacturing (NAICS 336214) sector. This sector includes establishments primarily engaged in manufacturing truck trailers, travel trailers, and campers. The award represents a specific instance of government procurement within this industrial base, likely for specialized military applications rather than recreational use. Comparable spending benchmarks would typically be found within defense procurement data for mobile platforms and support equipment.

Small Business Impact

The provided data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements. Therefore, this contract does not appear to directly impact the small business ecosystem or provide opportunities for small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which places performance risk on the contractor. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Vehicle Manufacturing
Tactical Support Equipment
Afghanistan Reconstruction Contracts
Defense Logistics Support

Risk Flags

Limited Competition
Specialized Equipment Manufacturing
Overseas Deployment Destination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to DAIMLER TRUCK NORTH AMERICA LLC. CLIN 0001AA FOR 22 EACH, M915A3S AND CLIN 0003AA FOR 60 EACH, M916A3S FOR AFGHANISTAN ARE ADDED TO THE CONTRACT BY THIS DELIVERY ORDER.

Who is the contractor on this award?

The obligated recipient is DAIMLER TRUCK NORTH AMERICA LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2009-03-24. End: 2009-09-30.

What is the specific intended use and technical capability of the M915A3S and M916A3S trailers?

The M915A3S and M916A3S trailers are specialized military equipment. While specific technical details are not provided in the award data, these designations typically refer to heavy-duty trailers designed for robust operational environments. The M915 series often relates to semi-trailers, potentially for cargo or specialized equipment transport, while the M916 series might indicate different configurations or payload capacities. Their deployment to Afghanistan suggests they are intended for logistical support, potentially carrying supplies, equipment, or serving as mobile workstations in austere conditions. The exact capabilities would be detailed in the contract's Statement of Work (SOW), which is not included here but would outline dimensions, weight capacities, environmental resilience, and any integrated systems.

How does the per-unit cost of $344,500 compare to similar military trailer procurements?

The average per-unit cost of approximately $344,500 is substantial, reflecting the specialized nature of military trailers compared to commercial counterparts. Without access to the detailed specifications (SOW) for the M915A3S and M916A3S, a precise comparison is challenging. However, military trailers often incorporate enhanced durability, specialized mobility features (e.g., for rough terrain), environmental hardening, and sometimes integrated power or communication systems. For context, commercial heavy-duty trailers might range from $50,000 to $150,000, but lack the military-grade specifications. Procurements for similar tactical or specialized support trailers by the DoD have varied widely, but costs exceeding $200,000-$400,000 are not uncommon for highly customized or robust platforms.

What factors might have contributed to only two bids being submitted under full and open competition?

Several factors could explain the limited number of bidders (two) despite the contract being awarded under full and open competition. Firstly, the specific nature of the M915A3S and M916A3S trailers may require highly specialized manufacturing capabilities, materials, or certifications that only a few companies possess. Secondly, the contract's destination (Afghanistan) might introduce perceived risks or logistical complexities that deter some potential bidders. Thirdly, the solicitation's requirements, while open, might have been stringent or costly to meet, effectively filtering out less capable or prepared firms. Lastly, the market for such niche military equipment might be inherently small, with only a few established players actively competing for these types of contracts.

What is Daimler Truck North America LLC's track record with similar government contracts?

Daimler Truck North America LLC, a prominent manufacturer of commercial vehicles, has a history of supplying various types of trucks and related equipment to the U.S. military and other government agencies. While this specific award is for trailers, the company's broader experience in producing robust, heavy-duty vehicles suggests a capacity to meet demanding military specifications. Their track record likely includes numerous contracts for tactical trucks, logistics vehicles, and potentially specialized trailers or mobile platforms. Past performance data, available through federal procurement databases like SAM.gov or FPDS, would provide more granular details on their successful delivery, contract values, and adherence to timelines for similar government procurements.

What are the potential risks associated with delivering trailers to Afghanistan?

Delivering specialized trailers to Afghanistan presents several potential risks. Security is a primary concern, involving the safe transit of goods through potentially unstable regions and ensuring the equipment is not compromised. Logistical challenges are significant, including transportation routes, customs, and coordination with local authorities or military units on the ground. Environmental factors, such as extreme weather conditions and challenging terrain, can impact delivery timelines and the condition of the equipment upon arrival. Furthermore, political instability or changes in operational requirements could lead to modifications, delays, or even cancellation of delivery orders. The contractor must navigate these complexities, which can impact cost, schedule, and overall contract performance.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Travel Trailer and Camper Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Daimlerchrysler AG (UEI: 498999044)

Address: 4747 N CHANNEL AVE, PORTLAND, OR, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,257,734

Exercised Options: $28,257,734

Current Obligation: $28,257,734

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline